Article: UBS Joins Morgan Stanley With Surprise $861 Million Archegos Hit

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UBS Joins Morgan Stanley With Surprise $861 Million Archegos Hit

Marion Halftermeyer, 27 April 2021

UBS Group AG disclosed an $861 million hit from the implosion of Archegos Capital Management and vowed to improve risk management, joining Morgan Stanley in blindsiding investors who’d been kept in the dark for weeks about the size of the losses.

The loss, mostly booked in the first quarter, overshadowed a better-than-expected profit, with strong performance in the key wealth management business. Chief Executive Officer Ralph Hamers said while the bank will require more transparency from clients to prevent such losses in the future, he defended the business with hedge funds as “strategic” and said he had no plans to follow rival Credit Suisse Group AG in cutting back lending.

“Clearly, we are very disappointed at this situation,” he said in an interview with Bloomberg TV. “We are reviewing the different prime brokerage relationships, as well as the GFO — the family office relationships.” Continue reading “Article: UBS Joins Morgan Stanley With Surprise $861 Million Archegos Hit”

Article: Archegos Losses Top $10 Billion as UBS, Nomura Add to Damage

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Archegos Losses Top $10 Billion as UBS, Nomura Add to Damage

Margot Patrick and Quentin Webb, 27 April 2021

The battering to Wall Street banks from Archegos Capital Management topped $10 billion after UBS Group AG and Nomura Holdings, Inc. reported fresh hits caused by the fund’s collapse.

UBS, Switzerland’s biggest bank by assets, said it lost $774 million following Archegos’s implosion, a bigger hit than analysts expected, deepening the damage caused by the fund. Continue reading “Article: Archegos Losses Top $10 Billion as UBS, Nomura Add to Damage”

Article: Danske Bank CEO Quits Amid Dutch Probe of Laundering Allegations

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Danske Bank CEO Quits Amid Dutch Probe of Laundering Allegations

Frances Schwartzkopff and Joost Akkermans, 19 April 2021

Danske Bank A/S is replacing Chris Vogelzang as chief executive officer after a Dutch money-laundering investigation implicated the former ABN Amro Bank NV executive, complicating the Danish lender’s efforts to get past its own scandal.

Vogelzang, who had run Denmark’s biggest bank for less than two years, will be replaced by Danske’s head of risk management, Carsten Egeriis. The move comes after authorities in the Netherlands named Vogelzang “a suspect in connection with their investigations of potential violations of Dutch legislation relating to the prevention of money laundering at ABN Amro,” Danske said. Continue reading “Article: Danske Bank CEO Quits Amid Dutch Probe of Laundering Allegations”